Leasing vs owning equipment

With the current speed of innovation, owning technology outright can cause a business to become uncompetitive if it holds onto it longer than it should.

Once an owned asset is paid for, the apparent financial advantages of stretching a longer life out of what has become outdated technology can lull managers into allowing the company to get behind with their capability. By definition, a lease expiration virually insures that a conversation will take place with the equipment provider to discuss the opportunity -- and a deal -- to acquire the latest technology.

Additionally, innovations may occur during a lease period that are so compelling that the equipment provider will approach the lessee about making a mid-lease upgrade.

In the 21st century, equipment and technology should be considered temporary tools that create wealth by increasing efficiency, productivity and capability, not by their long life or by appreciating.